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The political economy of oil, terrorism and institutional development in Iran and its impact on the Middle East

THE POLITICAL ECONOMY OF OIL, TERRORISM AND INSTITUTIONAL
DEVELOPMENT IN IRAN AND ITS IMPACT ON THE MIDDLE EAST
by
Behzad Tabatabaei
A Dissertation Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
(POLITICAL ECONOMY AND PUBLIC POLICY)
August 2010
Copyright 2010 Behzad Tabatabaei

This dissertation attempts to explain why Iran is the most significant country in the Middle East. The historical reasons for the influence of Iran in the region are discussed. These include social, cultural, and religious norms espoused by Iranians that have significantly impacted the development of the region and beyond. The political development of Iran in the last one hundred years is essential to understanding the current conflict between secular and radical religious forces in the region.; The institutional structure of the Islamic Republic of Iran (IRI) and how it functions are examined. Due to the diffusion of power within the state and the infusion of power within the office of the Supreme Religious Leader, there is no internal mechanism for reforming the system and its inefficient institutions. The redundant framework of dual institutions creates rent-seeking, corruption, misallocation of scarce resources, an ineffective massive governmental bureaucracy, central planning, capital flight and a general state of insecurity.; Institutional impediments in the National Security Council, the State Department and intelligence agencies in the US prevent a clear understanding of the IRI and hinder the formation of effective policies towards the IRI. As a result of continued radicalization of the regime and its supporters due to the framework of the institutions of the IRI, the pursuit of nuclear weapons by the IRI may lead to a nuclear confrontation with the state of Israel. The likelihood of a nuclear confrontation in the Middle East and the effectiveness of the deterrent nuclear policy of the state of Israel are analyzed.; Finally, the prospects of peace in the Middle East as well as the defeat of radical ideology and terrorism in the region will not be possible without a secular democratic Iran.

THE POLITICAL ECONOMY OF OIL, TERRORISM AND INSTITUTIONAL
DEVELOPMENT IN IRAN AND ITS IMPACT ON THE MIDDLE EAST
by
Behzad Tabatabaei
A Dissertation Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
(POLITICAL ECONOMY AND PUBLIC POLICY)
August 2010
Copyright 2010 Behzad Tabatabaei